Tesla beat Wall Street's profit estimate for the third quarter even as its car revenue slipped. In its Q3 2026 update released after the market close on Wednesday, Oct. 21, 2026, Tesla reported total revenue of $28.046 billion and non-GAAP earnings of 48 cents a share. Analysts polled by LSEG expected 43 cents and $27.9 billion, CNBC reported.

The numbers (from Tesla's Q3 2026 update)

  • Total revenue: $28.046 billion (Q3 2025: $28.095 billion)
  • Automotive revenue: $20.560 billion (Q3 2025: $21.205 billion)
  • Energy generation and storage revenue: $2.881 billion (Q3 2025: $3.415 billion)
  • Services and other revenue: $4.605 billion (Q3 2025: $3.475 billion)
  • Gross profit: $5.494 billion; income from operations: $718 million (Q3 2025: $1.624 billion)
  • GAAP net income attributable to common stockholders: $787 million, or $0.22 per diluted share (Q3 2025: $1.373 billion, $0.39)
  • Non-GAAP net income: $1.697 billion, or $0.48 per diluted share (Q3 2025: $1.770 billion, $0.50)
  • Operating cash flow: $6.263 billion; capital expenditures: $4.732 billion; free cash flow: $1.531 billion
  • Cash, cash equivalents and short-term investments: $45.447 billion

What Tesla blamed

Tesla said revenue was hit by a drop in energy storage revenue, "partially due to tariff-related customer refunds," lower vehicle average selling prices and lower regulatory credit revenue. It also said battery availability "continued to be the limiting factor in increasing auto volumes." The company produced 464,391 vehicles and delivered 486,532 in the quarter, passed 10 million vehicles produced and delivered, and said it ended the quarter with "the largest backlog for our passenger vehicles in four years." It reported record deliveries in Canada, Australia, Japan and Taiwan and record production at Gigafactory Berlin.

Merger question

On the call, Elon Musk did not add to his comments on a possible Tesla-SpaceX combination. "I think I said everything that should be said yesterday," he said, according to CNBC. CNBC said the stock was little changed in extended trading. Background: Tesla and SpaceX boards form special committees.